Kerala HC Overturns Denial of Input Tax Credit, Citing GST Notification Under Section 16(5)

The Kerala High Court in a case set aside the refusing Input tax credit under the Central Goods and Service Tax ( CGST ) Act, 2017 in consideration of notification on provision under section 16(5) of the act.

The applicant Reinstate Renovation Solutions, has approached the court being dissatisfied with the fact that the applicant has been refused the advantage of the ITC based on the provisions included in sub-section (4) of Section 16 of the CGST/SGST Acts, for the financial year 20192020, through an order dated 22.08.2024.

The counsel who is appearing for the applicant furnished that with the notification of Sub-Section (5) of Section 16 of the CGST/SGST Acts, the applicant shall now be qualified to the benefit of input tax credit which has been refused to the applicant through the order.

On account of notification of Sub-Section (5) of Section 16 of the CGST/SGST Acts, the single bench of Justice Gopinath P noted that the applicant shall be qualified for the GST ITC which has been refused to the applicant by the order.

The writ petition has been disposed of by the court by setting aside to the extent that it refused the ITC to the applicant as per the provisions of Sub Section (4) of Section 16 of the CGST/SGST Acts.

It was asked to the competent authority to pass the fresh orders post considering the provisions included in Section 16(5) of the CGST/SGST Acts post providing the chance of hearing to the applicant, within a specified duration of three months from the date of receipt of a certified copy of the ruling.

Read Also: Summary of GST Section 16 Under CGST Act with Eligibility

On behalf of the petitioner, Adv Santhosh P. Abraham appeared; for the respondent, Advs.V Girish Kumar and Jasmin M M appeared.